The Piedmont Perspective, Vol 69 - Two Heads Are Better Than One! October 1, 2008
What's New?
After last week's pragmatic overview of the market in The Perspective, I received a quick response from my long-time friend Vivian, who migrated to Terra Linda (Marin) a few years before I moved my family to Piedmont. Vivian and I exchange a frank debate about real estate on a weekly basis and she wanted an update about the future of the market (who doesn't?). Of all my friends, Vivian is typically the one who always sees the glass as half full, so I wondered if her concerns reflected the average homeowner's feelings. From the discussions I've had all week - they do . . .
Before responding, I wanted to get a true read on sales activity in the North Bay (remember, markets are local!). Picking up the phone to speak with my colleague, Val Rogers of Frank Howard Allen in Marin (vrogers@fhallen.com) I inquired about her recent experience in the market there.
Val who sells home in Ross (the Piedmont of Marin) Kentfield, Greenbrae, Mill Valley, Tiburon, Sausalito, Novato and Terra Linda and has more time in the trenches than just about anyone I know. I consider her not only a good friend and a mentor but also a finely tuned barometer of the marketplace and of our industry as a whole.
"Prices have adjusted 10-12% in Marin and they are holding steady," Val said. "By no means, are sellers 'giving away' their properties. They simply have too much equity in them and don't need to. Good properties continue to jump off the market in Marin." (Whew, that's been my experience here in the East Bay as well.)
Together this is what we concluded:
Should sellers enter the market?
That depends. What are the sellers' goals and motivation and are their expectations realistic? If yes, then there are still plenty of well-qualified buyers. While many REALTORS often advise sellers to wait until the spring, we really have no idea where the market will be in 2009. If you need to sell, you should move forward.
Should buyers enter the market?
Absolutely - After years of competing in a Sellers' Market, take advantage of the highly-anticipated Buyers' Market! (My employer, DJ Grubb, believes we have already hit the bottom!)
What if the market continues to correct?
It very well may, but holding out for "the bottom" may cause you to lose the unique home that fits your needs and requirements NOW. If you plan to stay in the home for several years, any further adjustments should be irrelevant in the long-term. If you plan to sell within a few years - rent.
Are loans tougher to come by?
Yes, they are, but liquidity does still exist. Meet with an experienced mortgage broker or your local banker before entering the marketplace to find out what steps you need to take in order to secure funds. Accorging to Diane Crosby of La Salle Finance, interest rates are expected to drop significantly next week! www.lasallefinance.com
Is cash king in this market?
Often - but not always. Cash is important to strengthening the terms of your offer - especially if it eliminates the appraisal condition or speeds up the close significantly - but cash doesn't trump a full price offer. (All offers are all cash to the seller at the close of escrow. How many days would you wait for an extra $25,000, $50,000 or $100,000? Thirty? Fourty-five? Even sixty? (Me too). It is a mistake to think that just because you have an ALL CASH offer, you are entitled to a wholesale price. All things being equal, a seller will likely take a slightly lower 'ALL CASH' offer in front of a highly-leveraged one (especially now) but a seller won't take it in lieu of a higher offer (practically and emotionally, sellers don't like to discount their homes.)
Here is our collective bottom line . . .
Quality and location have never been more important!
Good homes always sell irrespective of the market.
ANY flaw in a home is going to be magnified tenfold - mitigate them before you bring a house to market.
Both sellers and buyers should have realistic expectations about their outcome.
Loans are going to be tougher to come by. Secure your loan package before entering the marketplace.
Cash will play an important role, but it won't replace a much higher offer, especially if it is well-financed.
Take advantage of this "Buyer's Market!"
That's our opinion (two heads are better than one). How'd we do Vivian?
What's Coming?
Privately nestled beyond a front gate and surrounded by lush gardens and level lawn, lies a magical 3bdrm/4bth English Traditional at 689 Alvarado Road in Claremont Hills. Listed by Dana Cohen, this Circa 1926 home, renovated with ALL of today's modern conveniences, enjoys rich architectural details, European style kitchen and dazzling San Francisco bay and city skyline views! Price: $1,395,000. Open Thursday 10am -1pm and Sunday, Oct 5, 2-4:30pm.
Anthony Riggins brings to market a carefully preserved 2bdrm/2bth Historic Storybook home at 1615 Trestle Glen Road in Crocker Highlands. With architectural details that include an iron front gate, a serpentine staircase and a brick and stone chimney, this finely crafted home has appeared in many national publications and features a charming entryway, spacious living room with beamed ceiling and rubble stone trim fireplace. With an inviting dining room connected to a large eat-in kitchen and family room opening onto a whimsical courtyard and professionally landscaped, tiered gardens; this charming property will be open this Sunday from 2-4:30! Price: $925,000. www.grubbco.com
Jill Carrigan has just listed a Magnificent Mediterranean on a quarter acre parcel in Montclair just minutes form Montclair Village. This SPACIOUS 4bdrm/3.5bth home offers gourmet cook's kitchen with adjoining great room and fireplace and doors opening on to a magical central courtyard with cascading fountain. This custom home, built in 1996, utilized fine finishes including alder wood doors, wrought iron railings and wood beamed rooms. Price: $1,598,000. www.grubbco.com
An Eichler-esque mid-century at 2 Littlewood Drive in Piedmont has just hit the market fot $849,000. This 3bdrm/1bth contemporary features private courtyard patio and sleek open floor plan.
I will be holding open 1076 Mandana Boulevard in Crocker Highlands this weekend. This newly constructed Contemporary Craftsman features 4bdrms/3.5bths, great room with chef's kitchen, abundant natural light and exquisite detailing throughout. If you missed it before, don't make the same mistake twice. This elegant and romantic custom home is easy, breezy living. Back up the truck and unload the furniture! Price: $1,399,000. Open Sunday 2-4:30 ! www.1076mandana.com
Price Reductions!
The stunning Traditional at 334 Sheridan Avenue in Piedmont has been reduced to $4,950,000 and the equally elegant Mediterranean at 2 Westminster in Claremont Pines is now $2,800,000! Both of these homes are truly impeccable. If they were just out of reach before, now is your opportunity. Executive living at its finest!
Please give me a call if you would like to see any of these properties (or any others)!
What's Pending?
The "fixer" at 223 Mountain Avenue has gone pending! Also pending are the Queen Anne Craftsman at 21 Park Way and the starter "fixer" on Moraga Avenue. Add all three of these "fixers" to last week's quick sale of 309 Highland Avenue and one might easily conclude that a very strong market exists for the home in need of restoration!
What's Happening?
The news that the 700 billion-dollar bail out has stalled in Congress isn't good, but it seems to be a temporary set back. Once the Congress hammers out the details, we should have a better sense of where all this should lead and where we will land. . . However, it is becoming increasingly clear that ALL of us are going to share in the loss and in the recovery.
Despite the news, The GRUBB Co. sold 45 houses in September's market. Many qualified buyers are very interested in taking advantage of today's market. After waiting for a true "Buyer's Market" to emerge, it has. Foreclosed properties are being sold for pennies on the dollar!
While foreclosures and short sales don't necessarily reflect Piedmont's market or Oakland/Berkeley sales, good values are plentiful! Although many buyers will hesitate about stepping into the market just now, those who do commit to a long-term plan will most likely be well-rewarded for it down the road. (Think post 9/11. Those buyers made a very smart decision in retrospect.!) Focus on quality and location!
What's Fun!
The second annual Shades of Green Home and Garden Tour and Green Design Expo, www.shadesofgreenhometour.org will take place on Sunday, October 5 from 10am - 4pm and will include a self-guided tour of seven special and distinct homes in the charming, tree-lined Crocker Highlands Neighborhood of Oakland.
This year's showcase will display the broad range of architectural styles that are the hallmark of this historic neighborhood. It will also celebrate the inspiring and innovative design approaches that homeowners have brought to the task of simultaneously modernizing and preserving homes that were built in the
1920's.
In addition to the tour, there will be a Green Design Expo, held on the Crocker Highlands Elementary school grounds, highlighting eco-friendly construction and green landscaping techniques. Knowledgeable professionals will be on hand to share their information about sustainable products and design. Al fresco dining will be available throughout the day. The Green Design Expo is FREE and open to the public!
This event is a PTA fundraiser for the benefit of Crocker Highlands Elementary; one of Oakland's most diverse and successful schools. All proceeds will fund student enrichment programs. Tickets for the home and garden tour are $40 in advance and $45 at the door.
For further information, please call 510-452-5588 or shadesofgreen@crockerschool.org.
The Piedmont Plug!
A few weeks ago while shopping with my sister and her two stunning daughters (the advantages of mothering girls instead of boys) we happend upon Automic Garden at 5453College Avenue. For those of you thinking(and living) green, this unique eco-emporium is like discovering the mother ship! Filled with beautiful organic clothing, recycled glassware, oversized hemp bags, beeswax candles, homespun comforters and all manor of cool and trendy gifts and apparel, the Atomic Garden is a rare and inspirational treat.
Imagine my delight, when I discovered that one of Piedmont's newest citizens, Adrienne Armstrong, is one of the owners of this wonderful shop. Adrienne and her business partner, Jamie Kidson, met as soccer moms and have collaborated to create a forward-thinking, eco-friendly expereience. I invite you to discover this wonderful shop as well. (Don't wait for your neices to come to town!)
Automic Garden (510)923-0543 www.automicgardenoakland.com
THANKS FOR READING!
For more information about any of the properties or events listed above, please call me at (510) 339-0400 x264, or simply respond to this email. I'd love to share my real estate tips and my experience in the Piedmont community with you!
Feel free to visit my website at wwwwJulieGardner.com for more information as well.
After last week's pragmatic overview of the market in The Perspective, I received a quick response from my long-time friend Vivian, who migrated to Terra Linda (Marin) a few years before I moved my family to Piedmont. Vivian and I exchange a frank debate about real estate on a weekly basis and she wanted an update about the future of the market (who doesn't?). Of all my friends, Vivian is typically the one who always sees the glass as half full, so I wondered if her concerns reflected the average homeowner's feelings. From the discussions I've had all week - they do . . .
Before responding, I wanted to get a true read on sales activity in the North Bay (remember, markets are local!). Picking up the phone to speak with my colleague, Val Rogers of Frank Howard Allen in Marin (vrogers@fhallen.com) I inquired about her recent experience in the market there.
Val who sells home in Ross (the Piedmont of Marin) Kentfield, Greenbrae, Mill Valley, Tiburon, Sausalito, Novato and Terra Linda and has more time in the trenches than just about anyone I know. I consider her not only a good friend and a mentor but also a finely tuned barometer of the marketplace and of our industry as a whole.
"Prices have adjusted 10-12% in Marin and they are holding steady," Val said. "By no means, are sellers 'giving away' their properties. They simply have too much equity in them and don't need to. Good properties continue to jump off the market in Marin." (Whew, that's been my experience here in the East Bay as well.)
Together this is what we concluded:
Should sellers enter the market?
That depends. What are the sellers' goals and motivation and are their expectations realistic? If yes, then there are still plenty of well-qualified buyers. While many REALTORS often advise sellers to wait until the spring, we really have no idea where the market will be in 2009. If you need to sell, you should move forward.
Should buyers enter the market?
Absolutely - After years of competing in a Sellers' Market, take advantage of the highly-anticipated Buyers' Market! (My employer, DJ Grubb, believes we have already hit the bottom!)
What if the market continues to correct?
It very well may, but holding out for "the bottom" may cause you to lose the unique home that fits your needs and requirements NOW. If you plan to stay in the home for several years, any further adjustments should be irrelevant in the long-term. If you plan to sell within a few years - rent.
Are loans tougher to come by?
Yes, they are, but liquidity does still exist. Meet with an experienced mortgage broker or your local banker before entering the marketplace to find out what steps you need to take in order to secure funds. Accorging to Diane Crosby of La Salle Finance, interest rates are expected to drop significantly next week! www.lasallefinance.com
Is cash king in this market?
Often - but not always. Cash is important to strengthening the terms of your offer - especially if it eliminates the appraisal condition or speeds up the close significantly - but cash doesn't trump a full price offer. (All offers are all cash to the seller at the close of escrow. How many days would you wait for an extra $25,000, $50,000 or $100,000? Thirty? Fourty-five? Even sixty? (Me too). It is a mistake to think that just because you have an ALL CASH offer, you are entitled to a wholesale price. All things being equal, a seller will likely take a slightly lower 'ALL CASH' offer in front of a highly-leveraged one (especially now) but a seller won't take it in lieu of a higher offer (practically and emotionally, sellers don't like to discount their homes.)
Here is our collective bottom line . . .
Quality and location have never been more important!
Good homes always sell irrespective of the market.
ANY flaw in a home is going to be magnified tenfold - mitigate them before you bring a house to market.
Both sellers and buyers should have realistic expectations about their outcome.
Loans are going to be tougher to come by. Secure your loan package before entering the marketplace.
Cash will play an important role, but it won't replace a much higher offer, especially if it is well-financed.
Take advantage of this "Buyer's Market!"
That's our opinion (two heads are better than one). How'd we do Vivian?
What's Coming?
Privately nestled beyond a front gate and surrounded by lush gardens and level lawn, lies a magical 3bdrm/4bth English Traditional at 689 Alvarado Road in Claremont Hills. Listed by Dana Cohen, this Circa 1926 home, renovated with ALL of today's modern conveniences, enjoys rich architectural details, European style kitchen and dazzling San Francisco bay and city skyline views! Price: $1,395,000. Open Thursday 10am -1pm and Sunday, Oct 5, 2-4:30pm.
Anthony Riggins brings to market a carefully preserved 2bdrm/2bth Historic Storybook home at 1615 Trestle Glen Road in Crocker Highlands. With architectural details that include an iron front gate, a serpentine staircase and a brick and stone chimney, this finely crafted home has appeared in many national publications and features a charming entryway, spacious living room with beamed ceiling and rubble stone trim fireplace. With an inviting dining room connected to a large eat-in kitchen and family room opening onto a whimsical courtyard and professionally landscaped, tiered gardens; this charming property will be open this Sunday from 2-4:30! Price: $925,000. www.grubbco.com
Jill Carrigan has just listed a Magnificent Mediterranean on a quarter acre parcel in Montclair just minutes form Montclair Village. This SPACIOUS 4bdrm/3.5bth home offers gourmet cook's kitchen with adjoining great room and fireplace and doors opening on to a magical central courtyard with cascading fountain. This custom home, built in 1996, utilized fine finishes including alder wood doors, wrought iron railings and wood beamed rooms. Price: $1,598,000. www.grubbco.com
An Eichler-esque mid-century at 2 Littlewood Drive in Piedmont has just hit the market fot $849,000. This 3bdrm/1bth contemporary features private courtyard patio and sleek open floor plan.
I will be holding open 1076 Mandana Boulevard in Crocker Highlands this weekend. This newly constructed Contemporary Craftsman features 4bdrms/3.5bths, great room with chef's kitchen, abundant natural light and exquisite detailing throughout. If you missed it before, don't make the same mistake twice. This elegant and romantic custom home is easy, breezy living. Back up the truck and unload the furniture! Price: $1,399,000. Open Sunday 2-4:30 ! www.1076mandana.com
Price Reductions!
The stunning Traditional at 334 Sheridan Avenue in Piedmont has been reduced to $4,950,000 and the equally elegant Mediterranean at 2 Westminster in Claremont Pines is now $2,800,000! Both of these homes are truly impeccable. If they were just out of reach before, now is your opportunity. Executive living at its finest!
Please give me a call if you would like to see any of these properties (or any others)!
What's Pending?
The "fixer" at 223 Mountain Avenue has gone pending! Also pending are the Queen Anne Craftsman at 21 Park Way and the starter "fixer" on Moraga Avenue. Add all three of these "fixers" to last week's quick sale of 309 Highland Avenue and one might easily conclude that a very strong market exists for the home in need of restoration!
What's Happening?
The news that the 700 billion-dollar bail out has stalled in Congress isn't good, but it seems to be a temporary set back. Once the Congress hammers out the details, we should have a better sense of where all this should lead and where we will land. . . However, it is becoming increasingly clear that ALL of us are going to share in the loss and in the recovery.
Despite the news, The GRUBB Co. sold 45 houses in September's market. Many qualified buyers are very interested in taking advantage of today's market. After waiting for a true "Buyer's Market" to emerge, it has. Foreclosed properties are being sold for pennies on the dollar!
While foreclosures and short sales don't necessarily reflect Piedmont's market or Oakland/Berkeley sales, good values are plentiful! Although many buyers will hesitate about stepping into the market just now, those who do commit to a long-term plan will most likely be well-rewarded for it down the road. (Think post 9/11. Those buyers made a very smart decision in retrospect.!) Focus on quality and location!
What's Fun!
The second annual Shades of Green Home and Garden Tour and Green Design Expo, www.shadesofgreenhometour.org will take place on Sunday, October 5 from 10am - 4pm and will include a self-guided tour of seven special and distinct homes in the charming, tree-lined Crocker Highlands Neighborhood of Oakland.
This year's showcase will display the broad range of architectural styles that are the hallmark of this historic neighborhood. It will also celebrate the inspiring and innovative design approaches that homeowners have brought to the task of simultaneously modernizing and preserving homes that were built in the
1920's.
In addition to the tour, there will be a Green Design Expo, held on the Crocker Highlands Elementary school grounds, highlighting eco-friendly construction and green landscaping techniques. Knowledgeable professionals will be on hand to share their information about sustainable products and design. Al fresco dining will be available throughout the day. The Green Design Expo is FREE and open to the public!
This event is a PTA fundraiser for the benefit of Crocker Highlands Elementary; one of Oakland's most diverse and successful schools. All proceeds will fund student enrichment programs. Tickets for the home and garden tour are $40 in advance and $45 at the door.
For further information, please call 510-452-5588 or shadesofgreen@crockerschool.org.
The Piedmont Plug!
A few weeks ago while shopping with my sister and her two stunning daughters (the advantages of mothering girls instead of boys) we happend upon Automic Garden at 5453College Avenue. For those of you thinking(and living) green, this unique eco-emporium is like discovering the mother ship! Filled with beautiful organic clothing, recycled glassware, oversized hemp bags, beeswax candles, homespun comforters and all manor of cool and trendy gifts and apparel, the Atomic Garden is a rare and inspirational treat.
Imagine my delight, when I discovered that one of Piedmont's newest citizens, Adrienne Armstrong, is one of the owners of this wonderful shop. Adrienne and her business partner, Jamie Kidson, met as soccer moms and have collaborated to create a forward-thinking, eco-friendly expereience. I invite you to discover this wonderful shop as well. (Don't wait for your neices to come to town!)
Automic Garden (510)923-0543 www.automicgardenoakland.com
THANKS FOR READING!
For more information about any of the properties or events listed above, please call me at (510) 339-0400 x264, or simply respond to this email. I'd love to share my real estate tips and my experience in the Piedmont community with you!
Feel free to visit my website at wwwwJulieGardner.com for more information as well.
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